As far as the political and legal factors are worried, the entire film market is impacted by the hazard of piracy which might possibly cause a negative impact on the general income of the film industry. Having said that, copyright laws offer defense to the movie market in terms of discouraging piracy.
While the legal and political environment offers protection to movie makers, globalization and development of technological aspects have actually increased legal difficulties such as ease of piracy and breaking intellectual property rights.
It must be noted that motion pictures are part of the show business while expenditure on any type of home entertainment is basically an optional expenditure which is more or a luxury instead of a necessity. However, we look at the comparison of the GDP trend with the pattern in demand for movies, we can see that the two are not straight proportional suggesting that any change in GDP growth does not always cause a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it must be kept in mind that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of variety when it concerns opting for a particular segment. In addition with bulk of the audiences being college or university students with an average home earnings of $70,000, the buying power of the target market reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the household earnings, we can see that the home entertainment organisation has a lot of capacity for market players.
While technological factors have actually contributed towards decreasing the expense of home entertainment with the intro of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for consumers in order to make it more attractive than enjoying movies in the house. Additionally, while developments have contributed towards the threat of 'piracy' they have likewise contributed towards ease of storing and distributing movies.